Deepinder Goyal-led Zomato to replace JSW steel in BSE Sensex

India's financial markets are set to witness a significant shift as food delivery giant Zomato joins the BSE Sensex, replacing JSW Steel.

This change, part of the periodic rebalancing of indices, will take effect on December 23, 2024. Zomato’s inclusion marks the entry of a new-age tech stock into the 30-share index, reflecting the evolving dynamics of the market.

Zomato’s stellar performance

Zomato's ascent to the Sensex comes on the heels of an impressive rally in its stock. Over the past year, the company delivered a remarkable 130% return, far outperforming the Sensex’s 20% rise during the same period.

The Deepinder Goyal-led food delivery giant saw its shares gain 42% in the last six months and has achieved a year-to-date rise of over 112%. It has a market capitalization of Rs 2.32 lakh crore as of November 22.

Financially, the company also reported robust results for the July-September quarter, with consolidated revenue rising by 69% year-on-year to Rs 4,799 crore and net profit soaring five-fold to Rs 176 crore.

Impact on JSW Steel and Sensex composition

JSW Steel, which has provided a solid 27% return over the past year, will exit the Sensex to make room for Zomato.

This reflects the methodology of the Sensex, which includes companies based on their six-month float-adjusted market capitalization.

The index aims to represent large, well-established companies across diverse sectors, with Zomato becoming the first tech-focused stock to achieve this milestone.

Other index reshuffles 

The BSE also announced extensive changes to other indices:

 1. BSE 100 Index: Six stocks, including Jio Financial Services, Suzlon Energy, and Adani Green Energy, will debut. They replace companies like Ashok Leyland, PI Industries, and IRCTC.  
2. BSE Sensex 50: Additions include Zomato, Jio Financial Services, and Hindustan Aeronautics Ltd (HAL), replacing HDFC Life Insurance, BPCL, and LTI Mindtree.  
3. BSE Sensex Next 50: New entrants include Adani Green Energy, PB Fintech, and Suzlon Energy, among others.  

Introduction of futures and options  

In a related move, BSE will launch futures and options (F&O) trading for 43 stocks starting December 13, 2024.

These include names like Zomato, Jio Financial Services, Adani Green Energy, and Paytm’s One97 Communication.